The move follows the acquisition of Foreign & Colonial Management by financial services group Eureko. The combined business, which will also become the money manager to Eureko Group, will have e112bn of European sourced assets, of which 73% is pension money.

“The European asset management industry is undergoing rapid change as the momentum towards an equity based long-term savings culture gathers pace. The creation of the new F&C establishes a new force at the heart of this market,” says Robert Jenkins, chief executive of F&C Management.

The new company has leading positions in the Netherlands, Portugal and the UK and a presence in the German retail mutual fund market through co-operation with HypoVereinsbank, the former parent of Foreign & Colonial. Its assets under management are 49% Dutch, 22% British, 16% Portuguese and 12% German. The assets are mainly invested in Europe; 40% of which are in European bonds, 25% in European equity and 5% in European property.

The new group comprises F&C Netherlands, F&C Portugal and London based F&C Management.